The Help to Buy scheme is in danger of becoming permanent stimulus unless the Chancellor sets out an exit strategy, the British Bankers' Association (BBA) is set to warn.
As part of its submission to the Autumn Statement, the BBA said Chancellor George Osborne must set out exactly when the scheme will end.
The BBA, whose members include Barclays, HSBC and Lloyds Banking Group, said Help to Buy needs to set a clear end date to prevent the scheme from becoming a permanent feature of the property market, according to a report in The Sunday Telegraph.
Its submission said: “Measures to support housing supply remain crucial to ensure that higher activity in the housing market does not just translate into higher prices.
“Some members of the BBA are participating in the Government’s Help to Buy scheme, but further clarification is needed on exit strategies.”
Chief executive Anthony Browne said: “It’s early days for the Help to Buy scheme, but there are positive signs that it will allow many families to get on the property ladder and provide a wider stimulus to the economy.
“However, we would urge the Government to spell out a clear process to wind down Help to Buy when the time is right.
“We think it is in everyone’s interest that there is a clear exit strategy from this initiative, otherwise a taxpayer subsidy of the property market could become the norm.”
This is the first time the BBA has spoken out on Help to Buy, The Sunday Telegraph said.
Other senior bankers have warned that the scheme could cause distortions in the housing market is not kept under tight control.
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